VW beats expectations with 2000 results

Germany's biggest carmaker Volkswagen beat expectations on today by saying its pre tax profit rose almost 66 per cent in 2000…

Germany's biggest carmaker Volkswagen beat expectations on today by saying its pre tax profit rose almost 66 per cent in 2000 to euro 4.1 billion.

The group said net profit rose 144 percent to euro 2.06 billion.

The stock was up 3.42 percent at euro 59.23 euros this afternoon.

Analysts said that the company had been helped by strong sales in the US and a positive currency effect from a strong dollar in the past year.

READ MORE

The company said it expected profit and sales to continue to grow in 2001, but gave no specific forecast.

Profits in 2001 will be driven by new products such as the new Passat and Audi A4.

Volkswagen shares have risen about 12 per cent so far this year, but are still about eight per cent off their mid-November highs.

The results contrast with those of domestic rival Daimler-Chrysler which earlier this month released results showing that huge losses at its US Chrysler unit had dragged the whole group into the red in that period.